Economics CA Foundation

2. CA Foundation 2
The amount of a good or service that the producers are
willing and able to offer to the market at various prices
during a given period of time.
Unit 3: Supply

3. CA Foundation 3
Determinants
Price of the
Good
Price of
Related Goods
Prices of
Factors of
Production
State of
Technology
Government
Policy
Nature of
Competition &
Size of Industry
Unit 3: Supply

4. Unit 3: Supply
CA Foundation 4
When
Price
Goes
Up
Qty
Suppli
ed
Goes
Up
Qty
Suppli
ed
Goes
Down
When
Price
Goes
Down

5. Unit 3: Supply
CA Foundation 5

6. Unit 3: Supply
CA Foundation 6

7. Unit 3: Supply
CA Foundation 7

8. Unit 3: Supply
CA Foundation 8
1. Stricter government regulations increase production
costs and lower supply.
2. Looser government regulations decrease
production costs and increase supply.

9. Unit 3: Supply
CA Foundation 9
1. Under competitive conditions, supply will be more than
that under monopolized conditions.
2. If there are large number of firms in the market, supply
will be more.
3. Besides, entry of new firms, either domestic or foreign,
causes the industry supply curve to shift rightwards.

10. Unit 3: Supply
CA Foundation 10
Otherthings
remaining
Constant

11. Unit 3: Supply
CA Foundation 11
Other Factors
remain Constant

12. Unit 3: Supply
CA Foundation 12
Other Factors
Change

13. Unit 3: Supply
CA Foundation 13
Responsiveness of the quantity supplied of a good to a change in its price.
Elasticity of supply is measured by dividing the percentage change in
quantity supplied of a good by the percentage change in its price i.e.,

14. Unit 3: Supply
CA Foundation 14
e=0 e= Infinity
e=0E>0E<0

15. Unit 3: Supply
CA Foundation 15

16. CA Foundation 16